Lets see, the origional argument was against dvd playback in the PS2 to lower prices. Well, I can buy the PS2 for $149.99
here, which includes DVD playback, or I can buy the XBOX for $149.99
here, plus buy an XBOX dvd playback kit for $24.99
here.
So, Sony included DVD playback for no more money than the XBOX without DVD playback. Whats the problems now?
The CSS decryptor for DVD playback costs a manufacturer a anual cost of $15,000 a year, no matter how many times or how many products it is used in. So both Sony and Microsoft are paying $15,000 a year. Aren't you a little more pissed off at Microsoft for selling the "playback kit" separately now.
The licensor of CSS encryption technology is DVD CCA (Copy Control Association), a non-profit trade association with offices at 225 B Cochrane Circle, Morgan Hill, CA. There is a $15,000 annual licensing fee, but no per-product royalties.
You can read more of the above article
here.